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Charging fee for administering tips!

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patientlady

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Aug 25, 2009
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Hi
My daughter works for a restaurant, waitressing. I have checked on gov.uk regarding all taxation & NI, Tronc etc. My question is can the employer deduct 10% from the tips pool for administering this? I think I know what the answer is, probably yes, but would like clarification if some one could kindly help. Thank you
 
I would imagine they can charge what ever % fee they like for doing it,

But it does stink, i myself would be inclined to let her have her tip free of all charges ;)
 
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And when i leave a tip, yes, i know, Yorkshireman handing out money, i expect ALL of it to go to the staff. Not to some owner/manager to enhance their margin.
 
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patientlady said:
Hi
My daughter works for a restaurant, waitressing. I have checked on gov.uk regarding all taxation & NI, Tronc etc. My question is can the employer deduct 10% from the tips pool for administering this? I think I know what the answer is, probably yes, but would like clarification if some one could kindly help. Thank you
Click to expand...

Don't know if it's legal or not - there was a similar scam going on where they were paying below minimum wage but making it up with tips.
Either way, legal or not, it isn't ethical or decent - I hope one day your daughter finds an employer who treats her better than this?
 
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Hi D

You say it is your daughters employer doing this. The gals in my last pub used to share tips or the money that went into a jug when customers bought them a drink and they said that they would have later. Now my manager had her own drinks allowance so wasn't entiled to a share but nevertheless insisted on it behind my back.

A lot of restaraunt managers and head waiters do the same. Nothing you can do about that if he or she runs the place - but if there is a working owner he may not know about this. In which case I think the waitresses ought to get together and complain. Too risky for one to do it on her own.

Good luck

R
 
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oldeagleeye said:
Hi D

The gals in my last pub used to share tips or the money that went into a jug when customers bought them a drink and they said that they would have later.

In which case I think the waitresses ought to get together and complain.
R
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Cheers R but the NEW regulations from I think Feb state that all restaurants with waiting staff have to declare tips and pay tax & NI. There is even a paper set up about it. They have everything covered and the silly b..... of an owner has set a precedent and declared all the tips taken since. They do pool the tips with the kitchen and are not allowed to keep some aside! There is even some system called Tronc which allows no NI to be paid, but another nightmare for someone to take on and cannot be the owner, would you believe. They got you always!
 
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Hi Patient Lady,

The system you refer to came in last October (when the minimum wage was increased, and at the same time counting tips towards the wage was made unlawful).

I haven't looked at this issue in a while, but an article on tips & the minimum wage I wrote at the time might help. Giving this a quick glance, if the tips are received directly by the employee, then they can keep these - without any admin fee. However, if they do pay them into the tronc, I can't see any reason why the employer can't levy an admin fee. Arguably, the employees could arrange the tronc among themselves, but this would probably exclude all tips paid by cheque/card, so I think your daughter & her colleagues will most likely have to tolerate the 10% - any money (including the tips) paid to the employer is their's to deal with, so the employer taking 10% is better than taking 100%.


Karl Limpert
 
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